If you have ever wanted text to follow a certain line in a file you are creating or just make a proper wave or bend then using the pen tool along with text is the right technique for you.

First select your pen tool and draw any type of arch, it can be vertical or horizontal.

Now select your type tool or press “T” and hover the type tool overtop of the pen line. The type tool cursor should change to look like this…

Now type “hello”

You can drop the opacity on the previous pen marking layer and use the type layer separately for control over the text after typing. When you leave the text layer or simply create a new layer the control bar for the text movement will disappear. Now you know how to create text on lines.

After this the text is just like any other normal Photoshop text so you can rasterize, create clipping masks and all that other fun stuff.